12 November 2012

Custodian Capital acquires commercial property in Dudley

Custodian Capital, which is part of the Mattioli Woods plc group of companies, has purchased a Dudley property in a deal worth over £3.6 million. The property to be developed will comprise a three storey hotel with sixty-three en-suite bedrooms, a ground floor restaurant and car parking spaces. The brand new, modern specification hotel is to be let to Premier Inn Hotels Limited, the largest subsidiary of Whitbread plc, for 25 years from June 2013.

Custodian Capital has purchased the property for a syndicate of investors who will benefit from an initial rent of £239,400 per annum. Forecast annual total returns are over 7% from 2014, rising to 8.5% from 2018.

“We are pleased to have added the Dudley property to our portfolio. It is well located and will be let to a strong tenant, which is key to our investment strategy.”

“This partnership opportunity will offer potential investors a rare opportunity to participate in the ownership of a newly-developed high-profile hotel, in which we are forecasting an increase of 75% in net asset value in the first 10 years alone” he added.

Dudley remains one of the largest towns in the country with a population of 307,000 and over 1,750,000 within ten miles. The property is prominently located at the entrance to Dudley’s prestigious Castlegate Business Park, a large business and leisure development adjacent to the town centre and three miles from the M5 motorway. The business park includes many well-known office and retail brand names, including Rentokil, Showcase cinema, McDonald’s, Nando’s, Chiquitos, Pizza Hut and Frankie and Bennys. Nearby is a Tesco Extra Superstore and Ionic Park, a trade park with occupiers including Screwfix, Howdens, Magnet and City Electrical Factors.

The Dudley property is part of a nationwide portfolio of syndicated property investments of over £135 million, across all property sectors, with over 1,250 individual investors.

Prospective investors who are interested in this investment model must seek their own independent financial advice from an appropriate adviser who is authorised and regulated by the Financial Services Authority.